You can withdraw some of your pension pot as cash when you need it. Up to 25% of each amount you withdraw is tax free and the balance is then taxed at your highest rate of income tax
The additional income withdrawal could push you into a higher tax band.
Your provider may impose charges for your withdrawals, or specify a maximum number of withdrawals that can be taken in any period.
Taking several cash lump sums
|More flexible, keeping options open||Income is not secure. The income and the value of the investments could fall or even run out|
|You keep control of your savings and how they are invested||More complex, needs regular review and may require advice|
|Depending on how long you live, and performance of the funds, the money may be insufficient to support prolonged retirement|
|You can change the amount of income you receive and its timing to suit you||This strategy won't provide a regular income for you or for any dependant after your death|
|Potential for growth, increasing income and protection from inflation||Potential for poor performance, reduction in value if markets fall|
|Up to 25% of each withdrawal is tax-free|
When you get to 75 years of age, the amount of each withdrawal you can receive tax free will be subject to a maximum of a quarter of the Lifetime Allowance. You will not be able to take further withdrawals once your lifetime allowance is used.
Getting guidance and seeking advice on the appropriate solution for you is very important.
You can get guidance to help you understand your pension options from Pensionwise.gov.uk, a free and impartial Government service.
Regulated financial advice can also be sought to help you decide how to take your pension. At Wesleyan we're here to help and our financial consultants will help you find the solution that's right for you.